Refer to Figure 2-3. Carlos Vanya grows tomatoes and strawberries on his land. A portion of his land is more suitable for growing tomatoes and the other portion is better suited for strawberry cultivation
Which of the graphs in Figure 2-3 represent his production possibilities frontier?
A) Graph A
B) Graph B
C) Graph C
D) either Graph A or Graph B
E) either Graph B or Graph C
C
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Economists conclude that the only way to measure fairness is
A) to insure that the rules are fair. B) to insure that the result is fair. C) to insure that both the rules and the result are fair. D) to compare the allocatively efficient quantity to the equilibrium quantity. E) None of the above answers is correct.
Suppose all firms in a perfectly competitive industry have production processes characterized by the production function 
. Suppose the cost of labor is 20 and the cost of capital is 10.
a. Suppose that the industry is in long run equilibrium and that firms are using 1 unit of capital. What is the short run cost function of each firm?
b. Suppose there are 5,000 firms in long run equilibrium. What is the short run market supply function?
c. Suppose market demand is 
What is the equilibrium price?
d. Firms in this industry face a recurring fixed cost FC. What must FC be in order for this industry to indeed be in long run equilibrium with its 100 firms?
What will be an ideal response?
If the exchange rate changes from $0.08 = 1 mexican peso to $0.09 = 1 mexican peso, then
A) the peso has depreciated and the dollar has appreciated. B) both the peso and dollar have appreciated. C) both the peso and dollar have depreciated. D) the peso has appreciated and the dollar has depreciated.
A positive supply shock causes stagflation in the short run
a. True b. False